IPO Market Shows Signs of Recovery in 2023 with Hopes for Stronger 2024

As inflation cools and corporate profits are expected to rise, Wall Street anticipates a 'soft landing' from the Federal Reserve.

108 initial public offerings raised proceeds of about $19.4 billion in 2023, up from 71 IPOs for proceeds of $7.7 billion in 2022.
Major IPOs of 2023 included healthcare products company Kenvue, U.K. chip designer Arm Holdings, and footwear company Birkenstock, accounting for over half of the total IPO proceeds.
Inflation, which reached a peak of 9.1% in 2022, has cooled to a pace of 2.6%, and the Federal Reserve has signaled it could start cutting rates in 2024.
Corporate profits are expected to rise, with earnings gains of just under 2% during the fourth quarter of 2023 forecasted to be followed by a gain of more than 8% in the first quarter of 2024 and 10% during the second quarter of 2024 for companies in the S&P 500.
Wall Street is increasingly expecting the Fed to achieve its “soft landing” goal by trimming inflation to the central bank’s 2% target without an ensuing recession.